Accounting Assignment | College Homework Help

MI: Machine hours, M2: DL hours, M3: m2 Required: a) Please assign overhead costs to the departments (5 pts) b) Please assign service department costs to production departments by using “Step down method” (15 pts) c) Assume that Product A requires 5 machine hours in M1, 20 direct labour hours in M2, 20 m in M3 to be completed. Please calculate overhead cost to be assigned to the Product A (10 pts). Question 4 (Note that you have to show all your calculations) (10 pts in total) In a month, we have 30 days and each day we produce 100 units. The required data can be given as below: Administration cost: $3,000 per month Material Cost (30% is indirect): $12,000 per month Advertising cost: $4,000 per month Labour Cost (40% is indirect): $10,000 per month Insurance Cost of furniture in the Marketing Department: $20,000 per month Research Expense: $50 per month Repairing Cost: $100 per month Maintenance Cost: $75 per month Electricity cost: $50 per day Required: Please calculate cost of a single product? ^ of a no Questo Pin ola) Assume that you would like to invest in a company. Required: a) What is your cost object (5pts)? (Do not define cost object, please write down the item or service that you want to produce and sell) b) What is the Direct Material of your product or service (5pts)? c) What are the overhead costs of your product or service (5 pts)? d) Assume that you would like to assign overhead costs to your product or service. Which method you would prefer to use for assigning overhead cost to your product or service (In other words, how do you allocate overhead costs to your product or service) (5 pts)? Why (Please explain the reason of your selection) (5 pts)? e) Shall we add “the insurance cost of cars used in marketing department to the cost of your product or service? If not, Why (5 pts)? Get Accounting homework help today

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